We are exposed to credit losses primarily through our trade receivables. We assess ability to pay for certain customers by conducting a credit review, which considers the customer’s established credit rating and our assessment of creditworthiness. We determine the allowance for credit losses on accounts receivable using a combination of specific reserves for accounts that are deemed to exhibit credit loss indicators and general reserves that are determined using loss rates based on historical write-offs by geography and recent forecast information, including current underlying economic expectations. During the year, changes in economic conditions, including the impact of tariffs, contributed to higher bad‑debt write‑offs compared to the prior year.

These factors were considered in our assessment of expected credit losses and the determination of the allowance. We update our estimate of credit loss reserves monthly.




Allowance June 1, 2026	$	371
Current period provision for expected credit losses	271
Write-offs charged against allowance	(987)
Recoveries collected	622
Allowance September 30, 2026	$	277